Gap Zone
A Gap Zone is considered to be ‘closed’ when the market trades back through the unauctioned area and trades the high (for a gap up) or low (for a gap down) of the day prior to the session that first created the gap. A Gap Zone can be closed during the same session in which it was created, the next day, many days later or not at all.
A Gap Zone Fill may be perceived as significant as the market has successfully negated the Gap Zone and potentially invalidated the reasons for such a move in the first place. This may be a trigger to force further covering or re-positioning by certain market participants.
